G7 vows cooperation on financial crisis, warns on yen

Tokyo: The Group of Seven major economies vowed to work together to protect the crisis-hit financial system and fired a warning shot to currency traders over the surging yen.

But their efforts to soothe skittish markets fell on deaf ears with global stocks plunging and the yen rising back up towards fresh 13-year highs against the dollar.

“Unless the G7 takes ‘drastic steps’ such as joint market intervention to sell the yen, the currency is unlikely to come down," said Kenichi Yumoto, vice head of forex trading at Societe Generale in Tokyo.

In a brief joint statement, the G7 finance ministers and central bankers reaffirmed their shared interest in a strong and sts investors dumped high-yielding currencies and fled to safe havens.